The SOC(system on a chip) does not support any kind of analog component video, including VGA, since the SOC is designed for mobile phone use where this would not be a requirement. Additional componenty would be needed to generate RGB signals. Additional componentry would push the price beyond the $25 target and therefore won't happen.

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==interfacing to Raw LCD panels==

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Nokia N900 has 800x480 DCS LCD [http://e-ditionsbyfry.com/Olive/ODE/ECN/default.aspx?href=ECN%2F2009%2F08%2F02&pageno=5&entity=Pc00502&view=entity (afaik its like DSI, but has build in framebuffer)].

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Replacement screen is about ~$40 (~$50 with 4pin resistive touchscreen).